In the middle of 19th century, the economy of the state was mainly based on mining of valuable minerals and their processing; breeding of livestock became important towards the late19thcentury. Irrigation of agricultural products like wheat, corn, and hay was done. The industrial and service sectors became important in the middle of the 20th century. The economy of the state varied with its focus more on technical research and high-technology trades. Industries like that of food processing, transport gear, machinery etc. grew in this period. Colorado was the largest beer producer in the country. The estimates of Bureau of Economic Analysis showed that the cost of total state product in 2008 was around $248.6 billion and the Per capita income in the year 2007 was around $41,192 approximately, placing Colorado as the eleventh state getting such per capita income.
One of the key fiscal forces in the state is the Federal Government, which provides many vital services of North American Aerospace Defense Command, U.S. Air Force Academy and Peterson Air Force Base; National Oceanic and Atmospheric Administration and the National Institute of Standards and Technology in Boulder etc. In addition to these, a huge area of land is also under the federal ownership, and amounts to 24,615,788 acres (99,617 km2).
Denver is both the capital city and financial capital of Colorado. Many nationwide recognized brands have their origin in Colorado. Starting from Qwest, the pioneer in telecommunications, luggage from Samsonite, belts and hoses from Gates, and many other brands have originated in Denver. Other well known brands like that of Kuner, Golden Coors beer, Coors Tek ceramics, Jolly Rancher candy, Celestial Seasonings herbal teas, and many other industries, all have originated in Colorado.
Taxes in Colorado are charged on taxable income, i.e., the income left after subtracting the central exemptions and standard deductions. The contribution of income tax in the revenue of Colorado amounts to a flat 4.63%irrespective of the income level of the citizens. The contribution of Sales Tax in the revenue of Colorado is of 2.9% on retail sales. Real estate and personal property are liable to be charged in Colorado.
Charity donations also contribute towards the economy. Major parts of donations come from charitable societies based in Colorado, like that of the Daniels Fund, the Gates Family Foundation etc., amounting to nearly $400million each year. Colorado stands at thirty-eighth rank in the country with donations up to 3.4% of income.
The land of Colorado is very rich in hydrocarbon and other minerals. As per the Energy Information Administration, Colorado has seven largest Natural gas fields out of 100 in the whole Nation and two largest oil fields out of 100. The output from Colorado’s natural gas basins gives around 5 percent to the yearly natural gas production. Its oil deposits are of around1 trillion barrels. Deposits of coal, and quality diamonds can also be found in the mines of Colorado.
Special tax districts are spread across several counties of Colorado. The special taxes are levied only in the selected counties where they applied. Some of the special tax districts are: